Bear returns to hunt as Sensex dips 334 pts, Nifty below 15,650

Mumbai: Domestic markets surrendered early gains to finish deep in the red on Wednesday as profit-booking emerged in Reliance Industries, banking and infra stocks amid a weak trend in global equities.

Concerns over frothy valuations and a depreciating rupee also sapped investor confidence, traders said.

After a firm opening, the 30-share BSE Sensex suddenly succumbed to selling pressure in mid-afternoon trade. It finally closed 333.93 points or 0.64 per cent lower at 51,941.64, extending its losing streak to the second session.

On similar lines, the broader NSE Nifty slumped 104.75 points or 0.67 per cent to end at 15,635.35.

L&T was the top loser among the Sensex companies, shedding 1.80 per cent, followed by Reliance Industries, Bajaj Finserv, IndusInd Bank, Bajaj Finance, SBI, Maruti, Axis Bank and Bajaj Auto.

On the other hand, PowerGrid, NTPC, Titan, HCL Tech and Asian Paints were among the gainers, spurting up to 3.42 per cent.

"Domestic equities fell sharply as selling pressure in financials, auto and RIL dragged indices down," said Binod Modi, Head - Strategy at Reliance Securities.

Further, Asian markets traded weak, reacting on higher-than-expected jump in China's producer price index at 9 per cent for May, he added.

Sector-wise, BSE energy, oil and gas, realty, capital goods, industrials and auto indices fell up to 1.71 per cent, while utilities, power and consumer durables closed higher.

Broader BSE midcap and smallcap indices fell up to 0.95 per cent.

International oil benchmark Brent crude was trading 0.36 per cent higher at $72.48 per barrel.

Foreign institutional investors were net buyers in the capital market on Tuesday as they purchased shares worth

Rs 1,422.71 crore, as per exchange data.